Capitulation
It has often been said that bull markets top out when the last of the bears throw in the towel, ie. Capitulation. I believe we have finally seen that occur. Last week two of the highest profile bears seem to have capitulated. Mike Wilson from Morgan Stanley had his job responsibilites changed and that same firm’s trading desk apologized for following it’s longtime bear Marko Kolanovik’s stance. Not sure if either of the two strategists have changed their positions (I believe I read that Wilson had modified his stance somewhat) but more importantly when the second largest and possibly better trading firm on Wall Street gives up the ghost on it’s cautious stance, you are close to seeing real capitulation, as who is left to buy, who isn’t already, all in on the stock market?